The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-11-01
OFFERED, BUT NOT SOLD.
THE CENTRAL READY TO PART
WITH THE CAROLINA SYSTEM.

AdIOlllld llltS COlillhliG W NliNhiaDN, NAiN ~
Gently it has been stated as almost GER
tainty that while the entire South Carolina
! system would not be Topped off certain of
| its branches would. The statement is that
! the Port Royal and Augusta was to be re-
tanned, but that the other roads would go
TO either the Richmond and Danville or a
combination. What seems to have given
color to the rumors are the facts that new
| connecting lines are in contemplation, and
then the location Of the Port Royal
and Western Carolina makes it naturally a
| feeder to the Southern trade. The annual
meeting of the stockholders of the Port
| Royal and Augusta railroad will be held
in Augusta to-day and it has been rumored
that something may develop.
PRESIDENT ALEXANDER TALKS.
Gen. Alexander was asked if he could con-
| firm the rumor, or make a positive state
ments as to it's truth or falsehood. he re-
! piled: ~ think can settle all that. Here
| is the report which will read to the stock
holders in day or twon 1t is as follows:
| The Port Royal and Western Carolina Rail
| way Company was formed Oct. q, 1886 by the
| consolidation of the following companies, viz:
| The Augusta and Knoxville Railroad Company,
| the Greenwood, Laurens and Spartanburg Rail
| road Company, the Savannah Valley Railroad
| Company, and the Greenville and Laurens Rail
| road Company. The agreement of conSOlida-
| ton provided that the Port Royal and Au-
gtlsta Railway Company might become party
| thereto, and authorized the new company to
| issue a sufficient amount of bonds and common
and preferred stock, to replace and retire the
securities of that company.
THE CAROLINA CONSOLIDATION.
II having been impossible to secure the as
sent Of the security holders of the Port Royal
and Augusta to the consolidation, it was per-
k.I h. ~. Il
above and their securities and obligations have
been exchanged for those of the new company,
| in accordance with the terms of the consolida-
ton.
Including the Port Royal and Augusta rail
way, it was proposed to issue a consolidated
first mortgage bond for S3,500,000 of which
S725, 900 would have gone to the security holders
of that road. Leaving that road out of the con-
sodation the issue has been limited to 80 500 900
| 8 per cent. fifty year bonds, which have been
| applied as follows:
WHERE THE MONEY is.
S $50 900 remain in hands of trustees to retire
outstanding bonds Of Augusta and
Knoxville Railroad Company.
IS, 400 sold to pay holders of Augusta and
Knoxville stock, the value thereof
| as determined in agreement of con-
solidatiOn. Sl7 per share
$4,000 exchanged for bonds Of Greenwood,
Laurens and Spartanburg Railroad
Company.
100000 exchanged for bonds Greenville and
Laurens Railroad Company.
100000 exchanged for bonds Savannah Val
ley Railroad Company.
321, 600 placed in treasury of company to be
used for current needs, bettermentS,
etc.
| 81, 100000
1t was also proposed to issue 81 300 900 of pre-
ferred stock and So 09000 of common stock of
the new company, of which 81, 725, 900 preferred
and 81, 10000 of common were to go to security
holders and creditors Of the Port Royal and
Augusta, under the terms OF consolidation.
THE PREFERRD STOCK ISSUES.
Again. leaving out that road, the issue of pre-
| ferred stock has bean limited to SlSf, 900 and
the issue of common stock to 81 ,234, 900.
The preferred stock is entitled to a dividend
of not more than per cent. per annum, paya-
bic out of the net proceeds Of the company, in
each year, before any dividend is paid in that
year on the common stock-said preferred divi-
dendS to be non cumulative, and the stock to
have same voting power as the common stock
The total obligations of your property, there
fore are S2500 900 of bonds and S141S000 Of
stock, including common and preferred, which,
ON 2s9 miles of railroad, average but SlO,913 per
mile of bonds and $1,000 per mile of stock
The results of operation for the last fiscal
year ended June 80, 1887, have been as follows:
Total earnings Observation-Disclosures. S273, AS g2
Operating expenses and taxes. ..... 800 6S %
NOT MUCH OF A SHOWING.
The interest account for the year, over and
above what was provided for in the consoda-
ton, was Sl606l e. This left deficit for the
operations of the year Of S32S& 81.
The result appears discOuTaging. but it must
be borne in mind that none of the road is over
five years old, and a portion of ii has been in
operation less than a year. AS a system il is
yet to make its impress on the business Of the
territory which it serves, both in building up
| new business and inducing old business into
| new channels. In addition TO serious dis
advantages of this character, it suffered during
the last year greatly from the serious and I'M
usual failure of the crop in upper Carolina.
The present year opens with much brighter
prospects IN every respect. Most vigorous
efforts will be made to improve and cheaper
our service and to bring new business to our
lines and ii is believed that the surplus of bonds
in the treasury will enable us, not only to main
tain the property In excellent physical condi-
ton, but to meet all charges until the annual
earnings reach a figure which will make the
| property more than Self-SuStaining
NEw ENTERPRISES ON FOOT.
There are on foot several projected railroads
| from Eastern Tennessee and Kentucky TO the
South Atlantic. Should any Of these roads be
able to penetrate the mountains they will find
our friendly branches extended to meet them at
every available point. and ready to give them
the shortest possible line into Augusta. itself
one of the most tiourisiling cities of the South,
enjoying river transportation, and commanding,
not one, but all three of the prominent South
Atlantic ports Savannah, and Port Royal and
Charleston over the best railroads of the South.
with ample terminal facilities and established
steamship connections. No other road coulo
possibly be built on as low capitalization as
ours, and we may reasonably expect eventually
to become part of such a line.
CONDITIONAL PROPOSITIONS MADE.
"That,n continued the General, sis the
condition of the road. As to our willingness
to sell | will say that all our property is for
sale-at u price. | would sell my hat and
go home bareheaded for price. We are
perfectly willing to dispose of the Port
Royal and Western Carolina if we receive
what we want for it, So far as a probable
sale in the near future is concerned we have
been approached in an indefinite sort of
way, but | know of no one who is trying to
purchase the road. The Knoxville people
asked us if we would sell if they built the
Knoxville line down TO connect with us, and
we have had other conditional propositions,
but no direct offers
RIVER AND HARBOR NOTES.
Ia =